FT News Briefing Say hello to the Magnificent 47
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Feb 17, 2025 French President Macron convenes an emergency meeting with Ukraine’s allies amid rising geopolitical tensions. Meanwhile, a new index featuring Europe’s largest banks, dubbed the 'Magnificent 47,' is outperforming the U.S. tech giants. Elliott Management is also making waves, pushing for a strategic overhaul at British Petroleum. The podcast highlights the unexpected resurgence of European banks and the influence of activist investors on corporate governance, revealing intriguing investment opportunities beyond mega-cap stocks.
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Magnificent 47 vs. Magnificent 7
- The European Stock 600 Banks Index, or the "Magnificent 47," has outperformed the Magnificent 7 tech stocks since 2022.
- This lesser-known index has seen substantial growth due to rising interest rates.
Stock 600 Banks Index Performance
- The Stock 600 Banks Index's rally has gained less attention because it started from a low base after the financial crisis.
- Its recent success is also tied to the timing of rising interest rates, which negatively affected tech stocks.
Investment Opportunities Beyond Tech
- While the current rally's pace may not continue indefinitely, the banking sector still presents investment opportunities beyond mega-cap tech companies.
- Investors should look beyond well-known companies for potential growth.